Al-Marsad newspaper: The economic expert, Abdullah Al-Rabadi, answered a question regarding which is better for people to have the tax while preserving the value of the riyal, or to cancel the tax and reduce the riyal exchange rate?
Al-Rabadi revealed, during his hosting of the “Al-Liwan” program, on the “Rotana Gulf” channel, that one of the quick and successful solutions that have always been recommended by many foreign parties, at a time when government revenues are declining, is the Kingdom’s devaluation of the riyal, so that it can The government has to fulfill its obligations towards employee salaries.
Al-Rabdi said that the option to reduce the value of the riyal makes the government benefit, explaining: that when the state sells oil worth one hundred billion dollars, when converting it to the riyal, it becomes 375 billion riyals.
He added: “But if you change the exchange rate, and give it 4 percent, it becomes equal to four hundred billion riyals, so I benefited as a government, because by paying you the salary as it is, the 10 thousand will pay you and I will not give you a tax.”
The economist emphasized that everything that comes from abroad has a high cost, commenting: This harms everyone and its result is not good, so the second, least painful option was the tax.
